SEOUL, January 28 (AJP) - South Korea’s three major battery makers reported losses in the fourth quarter of 2025 as a prolonged slowdown in global electric-vehicle demand weighed on shipments.
SK On posted an operating loss of 441.4 billion won in the October–December period and a full-year operating loss of 931.9 billion won. LG Energy Solution also recorded an operating loss of 122 billion won in the fourth quarter, swinging to a loss from a year earlier.
Samsung SDI, which is scheduled to report earnings on Feb. 2, is also expected to post weak results. A securities-firm consensus estimates Samsung SDI’s fourth-quarter operating loss at 358.5 billion won.
The losses reflect an extended lull in EV demand, as global automakers scale back production plans or delay investments in new models.
Reduced battery shipments have pushed down factory utilization rates, increasing the burden of fixed costs and squeezing margins. Changes to EV subsidy policies, particularly in the United States and Europe, have also weighed on demand.
As a result, the battery makers are accelerating efforts to diversify beyond EVs into areas such as energy storage systems and robotics.
LG Energy Solution began mass production of long-cell lithium iron phosphate (LFP) batteries for ESS in May at its Holland, Michigan, plant. Samsung SDI continues ESS production in North America through its joint-venture facilities, while SK On plans to start ESS production in the second half of this year at its plant in Georgia.
In South Korea, battery makers are also expanding production and investment to respond to government-led bidding for a centralized ESS contract market. In a recent earnings call, SK On said it aims to secure 20 gigawatt-hours of global ESS orders by 2026, primarily in North America, and plans to strengthen LFP battery production capacity to attract new customers.
Robotics is also emerging as a medium- to long-term growth area. Industry officials say solid-state batteries, which could significantly improve safety and energy density, are being explored for use in next-generation devices such as humanoid robots.
Samsung SDI has begun joint development of robot-specific batteries with Hyundai Motor and Kia, while LG Energy Solution is working with U.S.-based Bear Robotics to expand supplies of cylindrical batteries for robotic applications.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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